IIPM fights meltdown, places 2300 students By Education Mail Bureau
Dell has witnessed a massive slide of 63 % (from $784 million to $290 million) in its profits for the quarter ending April 30, 2009 while its revenues plunged by 23%. In fact, it’s the second consecutive quarter where Dell has seen its profits dwindle and has also admitted that the situation is unlikely to improve in the year ahead. No doubt, the genesis of Dell’s problem lies in the fact that it is caught between conventional retail format and direct sales. Dell is also undergoing a major restructuring and all this combined resulted in disappointing earnings. “I think Dell should focus on what they do best; they are actually the number two on-line retailer in the US and not the number one like Amazon. They should stop trying to be all things to all people and find a way to make their on-line effort world leading,” avers technology expert Rob Enderal. Certainly, if Dell wants to woo corporate clients, it needs to find a real differentiating factor or else the slide will continue.
Surbhi Chawla
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Source : IIPM Editorial, 2009
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
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